Vicinity Centres (VCX) H2 2025 earnings summary

Executive summary

• Statutory net profit after tax rose to $1,004.6m, up 83.6% year-over-year, driven by property valuation gains and strong operating performance.

• Funds from operations (FFO) reached $674 million, up 1.4% year-over-year, with per security FFO at the top end of guidance.

• Portfolio repositioning continued with a focus on premium assets, including the acquisition of 50% of Lakeside Joondalup for $420 million and divestment of $460 million in non-strategic assets.

• Major developments at Chadstone and Chatswood Chase progressed, with pre-leasing largely complete and future income growth supported.

• Declared a final distribution of $0.0605 per security, totaling $0.12 for FY 2025, with a payout ratio of 95.4% of adjusted FFO.

Financial highlights

• Statutory net profit after tax: $1,004.6m (FY24: $547.1m), including $674 million FFO and $331 million from valuation gains.

• FFO per security: 14.79c, at the top end of guidance; distribution per security: 12.00c, payout ratio 95.4% of AFFO.

• Comparable net property income (NPI) grew 3.7%, led by premium assets delivering 4.9% NPI growth.

• Ancillary income rose 7% due to increased media income.

• Net tangible assets per security increased 10c to $2.40 over the year.

Outlook and guidance

• FY 2026 FFO per security expected in the range of $0.15–$0.152, representing 2%–3.5% growth after adjusting for one-off items and lower development-related rent loss.

• Comparable NPI growth expected at ~3% (3.5% excluding new taxes/levies).

• Loss of rent from developments expected to decrease to $25 million in FY 2026 and $15 million in FY 2027.

• Distribution payout ratio to remain at 95–100% of AFFO.

• No asset recycling included in FY 2026 guidance, but opportunities will be considered as they arise.